OKLAHOMA CITY — A lucrative state contract tied to billions in public investment funds is drawing scrutiny after an Oklahoma Watch investigation found connections between the winning firm and allies of Todd Russ during the bidding process.
The report examines the selection of Innovest Portfolio Solutions to advise the Tobacco Settlement Endowment Trust, or TSET, which manages billions in state funds. According to Oklahoma Watch, the contract replaced longtime consultant NEPC despite what the outlet described as strong prior investment performance.
Oklahoma Watch reported that individuals tied to Russ and the broader anti-ESG investment movement had professional and advocacy connections with Innovest during the competitive bidding process. Those connections included shared appearances at conferences, media engagements and policy efforts opposing environmental, social and governance investing standards.
Among those cited in the report is financial advisor Jerry Bowyer, who has worked with Russ and has also been involved in anti-ESG initiatives overlapping with Innovest and related networks.
Questions about process, not proof of wrongdoing
The investigation raises concerns from ethics and procurement experts about whether the process functioned as a fully independent and competitive bid.
However, the report does not allege illegal conduct.
Russ has denied improper communication with bidders, according to Oklahoma Watch, including during a key phase of the selection process when Innovest adjusted its proposed fees.
Oklahoma Watch also reported that Russ and his office did not respond to some requests for comment during its reporting.
Broader anti-ESG campaign backdrop
The contract decision comes amid a broader push led by Russ and other Republican state financial officers to challenge ESG-focused investment strategies.
Russ has been a leading figure in that effort, including actions targeting major financial firms over their ESG policies.
The investigation notes that some of the same networks involved in that advocacy — including policy groups and financial advisors — also intersected with individuals connected to the TSET bid process.
Board review and procurement scrutiny
The TSET board finalized the consultant selection following presentations in 2025. Some board members raised questions during the process, including about last-minute changes to cost proposals.
Experts cited by Oklahoma Watch said such dynamics can raise concerns about fairness in competitive bidding, particularly when relationships between decision-makers and bidders overlap.
Why it matters
At stake is oversight of one of Oklahoma’s largest public investment pools and the integrity of how those contracts are awarded.
While the investigation stops short of alleging misconduct, it underscores how political networks, policy advocacy and state contracting can intersect — and the scrutiny that follows when they do.
Source: Oklahoma Watch
